Iseq:2,576.81 (+91.61) Settlement date:September 3rd

IRISH SHARES outperformed European markets as positive corporate news and returning investor confidence buoyed leading stocks yesterday.

The Iseq index of Irish shares added almost 3.7 per cent while European indices gained between 2.5 per cent and 2.9 per cent.

The Dublin market’s biggest stock, building materials group CRH, jumped 5.7 per cent to close at €12.43.

The move for the stock helped boost the overall index as the group’s weighting is over 20 per cent.

Packaging group Smurfit Kappa was the strongest performer, adding 10.45 per cent to close at €5.517.

Dealers said that Smurfit had been over-sold during the recent bout of volatility, and was starting to look attractively priced to investors.

They said that similar sentiment towards CRH helped drive its gains, but a pending rebalancing of the influential MSCI index that is likely to include the Irish group was also likely to have had a positive impact on its shares.

Aer Lingus followed Smurfit closely, with a 9.3 per cent gain to 64.5 cent.

The airline reported yesterday that it made profits of €26 million in the second quarter.

DIY and builders’ merchant Grafton reported a 13 per cent boost to first-half profits, but investor reaction was muted, it rose 0.96 per cent to close at €2.726. Brokers suggested that investor sentiment towards the construction and DIY sectors is weak at the moment.

Elsewhere, exploration and production group Tullow gained 4 per cent to close at €12.092.

Bio-pharmaceutical specialist Elan added 6.5 per cent to close at €7.39.

Industrial holding and distribution group DCC added 3.2 per cent to end the day at €19.